Japan Plans Major Regulatory Overhaul for Crypto Assets

Japan's Financial Services Agency (FSA) is set to redefine the regulatory landscape for digital assets by classifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act. This sweeping reform will impose stringent disclosure requirements for 105 listed tokens, bringing them under the same transparency standards as traditional securities.

Exchanges must now reveal critical asset details including issuer information, underlying blockchain technology, and market volatility. The FSA is also extending insider trading regulations to crypto transactions, creating parity with equity markets. Non-public information about issuers or trading suspensions will trigger restrictions mirroring those in conventional finance.

In a strategic MOVE to boost competitiveness, Japan plans to reduce crypto capital gains taxes to 20% during next fiscal year's reforms - aligning digital asset taxation with stock trading rates. This regulatory framework positions Japan as a potential leader in institutional crypto adoption while addressing market integrity concerns.